Malaysia yesterday set up a task force to probe allegations that billions of dollars were looted from sovereign wealth fund 1Malaysia Development Bhd (1MDB) in an audacious fraud overseen by former Malaysian prime minister Najib Razak.
Malaysian Prime Minister Mahathir Mohamad led a reformist alliance to a shock victory at the May 9 polls over Najib’s coalition, which had governed the nation uninterrupted for over six decades.
A major reason for their success was public disgust at allegations of endemic corruption among the country’s ruling elite, and in particular an explosive scandal surrounding state fund 1MDB.
Photo: AFP
The fund, was set up in 2009 ostensibly to promote the development of the Malaysian economy, but it is alleged that Najib, his family and cronies looted the investment vehicle in a massive fraud stretching from the Cayman Islands to New York City, with stolen funds used to buy everything from real estate to works of art.
The special task force has been charged with seizing back assets and pursuing legal action against those suspected of breaking the law in relation to the fund, the prime minister’s office said.
“The government hopes the setting up of this task force, comprising a multi-agency enforcement unit, will help restore the dignity of Malaysia that has been tainted by the 1MDB kleptocracy scandal,” a statement from the office said.
The task force will include representatives of the Malaysian Anti-Corruption Commission (MACC), the police and the attorney-general’s office, as well as members of a previous task force set up under Najib that was disbanded as speculation mounted he was due to be charged.
Heading the body is Abdul Gani Patail, the former attorney-general who was removed from his post in 2015 at he was leading probes into 1MDB, as well as former MAAC chief commissioner Abu Kassim Mohamed.
The task force is set to meet today, Abdul Gani told reporters yesterday.
The commission is also to question Najib tomorrow.
It has reopened its investigation into the 1MDB scandal, initially focusing on how 42 million ringgit (US$10.6 million) went from SRC International to Najib’s account.
SRC was created in 2011 by Najib’s government to pursue overseas investments in energy resources, and was a unit of 1MDB until it was moved to the Malaysian Ministry of Finance in 2012.
The task force’s work will include reaching out to law enforcement agencies in other countries, including the US, Switzerland, Singapore and Canada, the statement from Mahathir’s office said.
Huge sums of money from the fund are believed to have been funneled round the world in a complex web of transactions.
Najib and 1MDB have consistently denied any wrongdoing.
He has said US$681 million of funds deposited in his personal bank account were a donation from a Saudi royal, not from 1MDB.
Additional reporting by Bloomberg and Reuters
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